After reading an article about the upcoming holiday sales predictions, I began to think how this would affect retail tenants at the local level. The article was from the site www.plainvanillashell.com. Click on the link for the full story.
http://plainvanillashell.com/article.asp?ID=8747
What can a Landlord do to protect themselves from situations where Tenants may close down or go out of business? Most answers lie in the way the leases and the guaranties have been crafted. Call Atlas Real Estate Advisors for assistance with you leases.
Holiday sales expected to slump: Predictions of gloomy season for retailers could mean great deals for consumers, especially those shopping for toys
Blanca Torres
November 2, 2007
Nov. 2--Related Link
--Poll: Are you going to spend more money this holiday season?
Just as Americans start packing their Halloween costumes, they can expect to see wreaths, mistletoe and snowy displays as retailers rush into the holiday shopping season.
This year, few stores are waiting to grab holiday dollars until the day after Thanksgiving, also known as Black Friday, which is three weeks from today and often is considered the start of the shopping season.
"Retailers have had a long time to think about a problematic holiday season," said Kit Yarrow, a consumer behavior expert and professor at Golden Gate University in San Francisco. "I don't think consumers will be able to resist some of the opportunities retailers are going to give them to spend money. It's truly a buyer's market."
Experts are predicting a gloomy holiday shopping season -- the worst in five years, some say -- but though that may be a problem for retailers, it could mean bigger and earlier deals for consumers.
The trend is especially evident in the toy sector, which has been tainted in recent months with recalls prompted by lead-contaminated products.. Wal-Mart, Toys "R" Us and KB Toys have started discounting goods and plan to offer door-buster-style sales this weekend.
"Consumers are going to get some great deals on toys," said Frank Badillo, a senior economist and retail consultant with Retail Forward Inc. "That is going to make things very rough for retailers and toymakers in terms of profit, but they are still going to move a lot of toys. It's going to be a very promotional category this holiday."
A declining housing market, rising energy costs and fear of a recession are beating down some shoppers' moods during the busiest time of year for retailers.
Steve Brown of Livermore said his concerns about the economy will cause him to spend about 25 percent less this year than last.
"Higher fuel prices, negativity about the economy ... it takes a toll on everybody's budget," he said. "This year we will proceed a little more cautiously."
About 40 percent of consumers share Brown's sentiment, according to a survey of more than 14,000 consumers by accounting and consulting firm Deloitte & Touche USA.
"The economy's impact is going to vary across the different aspects of retail," said Steve Lemelin, a Deloitte consulting regional retail sector leader based in San Francisco. "The American consumer never wants to give up on the holiday season. ... Consumers will likely limit the amount they spend on travel or things for themselves."
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